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The current valuation of the Detroit Institute of Art's collection will stand.

Judge Steven Rhodes denied creditors' request to create an independent committee to evaluate the worth of the DIA's assets as part of Detroit's bankruptcy proceedings.

"The court finds that even if it did have the discretion to appoint an art committee, it would still deny the motion," Rhodes ruled Wednesday afternoon.

Meanwhile, in Lansing, Gov. Rick Snyder recommended the state participate in a plan to protect the DIA collection and shore up the Detroit pension plans, contributing $350 million over a period of 20 years to help resolve bankruptcy. (Read full story here.)

Last fall, Emergency Manager Kevyn Orr asked New York auction house Christie's International Inc. to evaluate the museum's holdings. In December, it reported that the sale of the city-owned artwork could bring in $454 million to $867 million if sold.

The city's creditors, who are owed more than $18 billion, challenged that evaluation, saying it was far lower than expected and that it only included a fraction of the artwork.

Rhodes, however, agreed with city attorney Bruce Bennett's arguments that Christie's only evaluated the pieces that were city-owned and thus eligible for monetization. The rest of the collection are gifts and protected by strings from the original donors.

"Christie's report taught us something that art professionals knew, that the value in a collection like this is limited to a relatively few number of pieces," testified Bennett. "Upwards of 80 percent of the value was basically in 75 works, or something like that.

"It's a waste of time and money to look at all of it."

In his ruling, Rhodes told the court that it is time for negotiation and issues pertaining to the artwork must be included in the plan of adjustment, which Orr must file by March 1.

"This is not the time for defiant swagger, dismissive pound-the-table, take-it-or-leave-it proposals that are a one-way ticket to a chapter 18," Rhodes said. "The court will only confirm a plan that the city shows is feasible. The court will not confirm a plan just to get a plan done."

And, Rhodes elaborated, "feasible" means a plan that allows the city to balance its books and reinvest in city services and its citizens.

To prevent any sale of the art and to help Detroit's underfunded pension system, museum boosters have offered to provide the city with $330 million.

Rhodes also declined to bar the city immediately from imposing cuts to retiree health care. Instead, he will consider a request to stop the city from imposing the reductions as part of the normal objection process. If necessary, he will hold a hearing later this month on the cuts, he said.